Zildjian corporation manufactures a single product with the following unit costs for 1,250 units: direct materials $2,300 direct labor 960 factory overhead (30% variable) 1,800 selling expenses (50% variable) 900 administrative expenses (10% variable) 840 total per unit $6,800 recently, a company approached zildjian corporation about buying 100 units for $5,100 each. currently, the models are sold to dealers for $7,900. zildjian corporation's capacity is sufficient to produce the extra 100 units. no additional selling expenses would be incurred on the special order. what is the profit earned by zildjian corporation on the original 1,250 units?

Suppose that two firms produce differentiated products and compete in prices. as in class, the two firms are located at two ends of a line one mile apart. consumers are evenly distributed along the line. the firms have identical marginal cost, $60. firm b produces a product with value $110 to consumers. firm a (located at 0 on the unit line) produces a higher quality product with value $120 to consumers. the cost of travel are directly related to the distance a consumer travels to purchase a good. if a consumerhas to travel a mile to purchase a good, the incur a cost of $20. if they have to travel x fraction of a mile, they incur a cost of $20x. (a) write down the expressions for how much a consumer at location d would value the products sold by firms a and b, if they set prices p_{a} and p_{b} ? (b) based on your expressions in (a), how much will be demanded from each firm if prices p_{a} and p_{b} are set? (c) what are the nash equilibrium prices?